REG - Clarke(T.) PLC - Half-year Report <Origin Href="QuoteRef">CTO.L</Origin> - Part 2
02/08/2016 07:07
- Part 2: For the preceding part double click ID:nRSB9163Fa
6.7 12.4 10.3 4.5 (14.3) 19.6
Note 3 - Taxation expense
The effective income tax rate applied for the period is 20.0% (30th June 2015:
21.8%).
Note 4 - Discontinued operations
A. Description
The Group' activities in Bristol and Cardiff were discontinued in the year
ended 31st December 2015. The Bristol and Cardiff operations were reported as
discontinued operations for the year ended 31st December 2015, and the results
for the six month period ended 30th June 2015 have been re-presented
accordingly. The remaining contractual obligations of these businesses were
transferred to the expanded South-West division, and further work is being
undertaken in 2016 to close out these contracts.
B. Financial performance
Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Revenue 2.5 4.7 5.0
Cost of sales (2.5) (4.8) (6.8)
Gross loss - (0.1) (1.8)
Administrative expenses (0.1) (0.6) (1.6)
Loss from operations (0.1) (0.7) (3.4)
Finance income - - -
Finance expenses - - -
Loss before taxation (0.1) (0.7) (3.4)
Taxation - 0.2 0.7
Loss for the financial period (0.1) (0.5) (2.7)
Note 5 - Earnings per share
A. Basic earnings per share
The earnings per share represent the profit for the period divided by the
weighted average number of ordinary shares in issue.
Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Earnings:
Profit / (loss) attributable to owners of the Company
Continuing operations 1.3 1.2 2.8
Discontinued operations (0.1) (0.5) (2.7)
Profit attributable to equity holders of the parent 1.2 0.7 0.1
Weighted average number of ordinary shares (000s) 41,764 41,751 41,670
B. Diluted earnings per share
Diluted earnings per share is calculated by adjusting the weighted average
number of ordinary shares outstanding to assume conversion of all dilutive
potential ordinary shares. The company has three categories of dilutive
potential ordinary shares: share options granted under the Savings Related
Share Option Scheme, and share options and conditional share awards granted
under the Equity Incentive Plan. Further details of these schemes are given
in note 20 of the 2015 annual report and financial statements.
Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Earnings:
Profit / (loss) attributable to owners of the Company
Continuing operations 1.3 1.2 2.8
Discontinued operations (0.1) (0.5) (2.7)
1.2 0.7 0.1
Weighted average number of ordinary shares in issue (000s) 41,764 41,751 41,670
Adjustments
Savings Related Share Options (000s) 526 256 465
Equity Incentive Plan
Conditional share awards (000s) 636 723 957
Options (000s) - 50 72
Weighted average number of ordinary shares for diluted earnings per share (000s) 42,926 42,780 43,164
C. Underlying earnings per share
Underlying earnings per share represents the profit for the period from
continuing operations adjusted for amortisation of intangible assets and
non-recurring costs and the tax effects of these items, divided by the
weighted average number of ordinary shares in issue. Underlying earnings is
the basis on which the performance of the operating divisions is measured.
The underlying profit for the period is calculated as follows:
Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Profit from continuing operations attributable to owners of the company 1.3 1.2 2.8
Adjustments:
Amortisation of intangible assets 0.1 0.1 0.2
Tax effect of adjustments - - -
Underlying profit after tax from continuing operations 1.4 1.3 3.0
Weighted average number of ordinary shares in issue (000s) 41,764 41,751 41,670
Adjustments
Savings Related Share Options (000s) 526 256 465
Equity Incentive Plan
Conditional share awards (000s) 636 723 957
Options (000s) - 50 72
Weighted average number of ordinary shares for diluted earnings per share (000s) 42,926 42,780 43,164
Underlying earnings per share 3.55p 3.32p 7.11p
Diluted underlying earnings per share 3.45p 3.24p 6.86p
Note 6 - Interim dividend
An interim dividend of 0.5p per share (2015: 0.5p) was approved by the board
on 1st August 2016 and has not been included as a liability as at 30th June
2016. The shares will go ex-dividend on 8th September 2016 and the dividend
will be paid on 7th October 2016 to shareholders on the register as at 9th
September 2016. A dividend reinvestment plan is available for shareholders.
Those shareholders who have not elected to participate in this plan, and who
would like to participate with respect to the 2016 interim dividend, may do so
by contacting Capita Registrars on 0371 664 0381. The last day for election
for the interim dividend reinvestment is 14th September 2016 and any requests
should be made in good time ahead of that date.
Dividends paid in period Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Final dividends in respect of previous year 1.1 1.1 1.1
Interim dividend in respect of the current year - - 0.2
Dividends recognised in the period 1.1 1.1 1.3
Note 7 - Notes to the consolidated statement of cash flows
A. - Reconciliation of operating profit to net cash from operating activities Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Profit from operations
Continuing operations 2.1 2.0 4.4
Discontinued operations (0.1) (0.7) (3.4)
Depreciation charges 0.2 0.3 0.5
Profit on sale of property, plant and equipment (0.1) - (0.1)
Equity settled share based payment (credit) / expense 0.1 0.1 (0.1)
Amortisation of intangible assets 0.1 0.1 0.2
Defined benefit pension scheme credit (0.2) (0.2) (0.5)
Operating cash flows before movements in working capital 2.1 1.6 1.0
Decrease / (increase) in contract balances 2.2 (1.3) (3.1)
(Increase) / decrease in debtors (2.1) (5.3) (1.6)
(Decrease) / increase in creditors (6.4) (7.5) 7.1
Cash (used in) / generated by operations (4.2) (12.5) 3.4
Corporation tax paid - (0.2) (0.3)
Interest paid (0.1) (0.1) (0.4)
Net cash (used in) / generated by operating activities (4.3) (12.8) 2.7
B. Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and other short-term highly
liquid investments that are readily convertible into cash, less bank
overdrafts.
C. Borrowings
The Group's £5m committed three year Revolving Credit Facility was fully drawn
at 30 June 2016.
Note 8 - Related party transactions
Transactions between the company and its subsidiary undertakings, which are
related parties, have been eliminated on consolidation and are not disclosed
in this note. Full disclosure of the Group's other related party transactions
is given in Note 23 to the Group's financial statements for the year ended
31st December 2015. There have been no material changes in these relationships
in the six months ended 30th June 2016 that have materially affected the
financial position or performance of the Group during that period.
Note 9 - Pension commitments
The present value of the defined benefit pension scheme and the related past
and current service costs were measured using the projected unit method. The
amount included in the balance sheet arising from the Group's obligations in
respect of its defined benefit retirement scheme is as follows:
Unaudited30 06 2016£m Unaudited30 06 2015£m Audited31 12 2015£m
Present value of defined benefit obligations 52.4 44.8 43.2
Fair value of scheme assets (30.5) (29.1) (29.8)
Deficit in scheme recognised in the statement of financial position 21.9 15.7 13.4
Key assumptions used:
Rate of increase in salaries 2.20% 2.90% 2.85%
Rate of increase of pensions in payment 2.70% 3.20% 3.05%
Discount rate 3.20% 3.90% 4.05%
Inflation assumption 2.90% 3.40% 3.35%
Mortality assumptions (years): Unaudited30 06 2016 Unaudited30 06 2015 Audited31 12 2015
Life expectancy at age 65 for current pensioners:
Men 23.7 23.7 23.7
Women 25.1 25.0 25.0
Life expectancy at age 65 for future pensioners(current age 45)
Men 25.1 25.0 25.0
Women 26.6 26.5 26.5
Statement of directors' responsibilities
The directors confirm that the interim management report includes a fair
review of the information required by DTR 4.2.7 (indication of important
events during the first six months and description of principal risks and
uncertainties for the remaining six months of the year) and DTR 4.2.8
(disclosure of related party transactions and changes therein). The directors
also confirm that the interim financial statements have been prepared in
accordance with IAS 34 as adopted by the European Union and present a true and
fair view of the assets, liabilities, financial position and profit of the
Group.
On behalf of the Board
Iain McCusker - Chairman
Mark Lawrence - Chief Executive
Martin Walton - Finance Director
2nd August 2016
This information is provided by RNS
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